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Finance: U.S. banks reject deposits

01/03/2021
Categories: Economy/Forex

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Many U.S. banks ask their customers to go and keep their money elsewhere. Nathan Stovall, an expert on the US financial system at S&P Global, in a conversation with BBC Mundo said these banks are inundated with money.

Customers of the largest U.S. banks complain about the rejection of their money deposit. Some of JP Morgan's biggest clients said the bank asked them to go and keep their money elsewhere. Bank of America, one of the giants of American finance and Citigroup are part of the list.

JP Morgan chief Jamie Dimon said the incumbent investment firm has asked some of the companies that have the most funds deposited within it to transfer them to other entities, reducing its deposit base by $200,000 million.

" The country's largest banks are inundated with money, to the point that some have started rejecting deposits and we might see others start doing the same ," says Nathan Stovall, an expert on the U.S. financial system at S&P Global. in a conversation with BBC Mundo. According to him, this is an unprecedented situation.

He believes that America is experiencing " a liquidity crisis in reverse. Normally, in times of recession, cash becomes a valuable commodity and banks can be very aggressive in raising funds ."

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